Zacks Research Issues Pessimistic Estimate for IRDM Earnings

Key Points

• Zacks Research has revised down its Q2 2026 earnings estimate for Iridium Communications to $0.24 per share from $0.25, reflecting a cautious outlook.
• Iridium recently reported a quarterly earnings of $0.20 per share, missing consensus estimates of $0.23, despite a year-over-year revenue increase of 7.9%.
• The company announced an increase in its quarterly dividend to $0.15 per share, marking a 2.4% dividend yield and a payout ratio of 56.57%.

Iridium Communications Inc (NASDAQ:IRDM - Free Report) - Equities research analysts at Zacks Research decreased their Q2 2026 earnings per share estimates for shares of Iridium Communications in a note issued to investors on Wednesday, August 13th. Zacks Research analyst R. Department now expects that the technology company will post earnings of $0.24 per share for the quarter, down from their previous estimate of $0.25. The consensus estimate for Iridium Communications' current full-year earnings is $0.89 per share.

Iridium Communications (NASDAQ:IRDM - Get Free Report) last released its quarterly earnings results on Thursday, July 24th. The technology company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.03). The company had revenue of $216.91 million during the quarter, compared to the consensus estimate of $214.73 million. Iridium Communications had a return on equity of 20.28% and a net margin of 13.20%. The company's revenue was up 7.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.27 earnings per share.

Other research analysts have also issued reports about the company. Barclays reduced their price target on Iridium Communications from $38.00 to $31.00 and set an "overweight" rating for the company in a research report on Monday, July 28th. Wall Street Zen downgraded Iridium Communications from a "buy" rating to a "hold" rating in a research note on Thursday, May 1st. William Blair upgraded Iridium Communications from a "market perform" rating to an "outperform" rating in a research note on Tuesday, April 22nd. Raymond James Financial restated a "strong-buy" rating and set a $39.00 target price (down from $47.00) on shares of Iridium Communications in a research note on Friday, July 25th. Finally, Morgan Stanley dropped their target price on Iridium Communications from $40.00 to $37.00 and set an "overweight" rating on the stock in a research note on Friday, August 1st. Two equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, Iridium Communications presently has a consensus rating of "Moderate Buy" and a consensus price target of $34.33.

Iridium Communications Stock Up 0.2%

Shares of IRDM traded up $0.06 during trading hours on Thursday, hitting $25.01. The company had a trading volume of 1,528,924 shares, compared to its average volume of 2,180,651. The company has a market capitalization of $2.65 billion, a PE ratio of 25.26, a price-to-earnings-growth ratio of 0.91 and a beta of 0.76. The company has a current ratio of 2.51, a quick ratio of 1.75 and a debt-to-equity ratio of 3.82. Iridium Communications has a one year low of $19.91 and a one year high of $35.85. The company's fifty day moving average price is $28.47 and its two-hundred day moving average price is $27.53.

Institutional Trading of Iridium Communications

Several large investors have recently added to or reduced their stakes in the company. Quantinno Capital Management LP grew its stake in Iridium Communications by 3.1% during the 2nd quarter. Quantinno Capital Management LP now owns 15,199 shares of the technology company's stock valued at $459,000 after purchasing an additional 461 shares during the last quarter. Intech Investment Management LLC grew its stake in Iridium Communications by 0.7% during the 2nd quarter. Intech Investment Management LLC now owns 66,921 shares of the technology company's stock valued at $2,019,000 after purchasing an additional 473 shares during the last quarter. SBI Securities Co. Ltd. grew its stake in Iridium Communications by 37.2% during the 1st quarter. SBI Securities Co. Ltd. now owns 1,757 shares of the technology company's stock valued at $48,000 after purchasing an additional 476 shares during the last quarter. IFM Investors Pty Ltd grew its stake in Iridium Communications by 3.7% during the 1st quarter. IFM Investors Pty Ltd now owns 13,402 shares of the technology company's stock valued at $366,000 after purchasing an additional 480 shares during the last quarter. Finally, GAMMA Investing LLC grew its stake in Iridium Communications by 14.1% during the 1st quarter. GAMMA Investing LLC now owns 3,961 shares of the technology company's stock valued at $108,000 after purchasing an additional 488 shares during the last quarter. Hedge funds and other institutional investors own 84.36% of the company's stock.

Iridium Communications Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 2.4%. The ex-dividend date is Monday, September 15th. This is a boost from Iridium Communications's previous quarterly dividend of $0.14. Iridium Communications's dividend payout ratio (DPR) is presently 56.57%.

Iridium Communications Company Profile

Iridium Communications Inc provides mobile voice and data communications services and products to businesses, the United States and international governments, non-governmental organizations, and consumers worldwide. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of Things (IoT) services.